Years ago I went to a friend of a friend's sheep barbecue. I was hungry and my first helping tasted really good. But my second serving was revolting. At first I thought it was the tomatoes that it had been cooked with. (I like tomatoes now, but wasn't a fan then) I kept trying it, but it was still gross.
Several years later I was talking to a different friend about this experience. He had in laws who had raised sheep and goats. He said that if the wool touches the meat during the slaughtering process, the lanolin gets into the meat and instantly makes it all go rancid. So I must have had some rancid meat.
His in laws had a special procedure. When they skinned the animal, first they would cut a small hole in the hide. Then they would take an air nozzle and blow compressed air into the hide. This would separate the hide from the flesh and make it easy to remove the skin without touching wool to meat.
I don't know if lanolin makes mutton taste bad. I don't know if that procedure is helpful. But if mutton often tastes the way that I tasted it, I could understand why it is not popular.